How Soon Can I Remortgage?

Answered on 20 March 2024 by

I recently bought a property and need to remortgage. How soon can you remortgage after buying a house? Can you remortgage early?

Nicholas Mendes

There are options that’ll allow you to remortgage a property shortly after purchasing it, but what works best for you will depend on your situation and how the property first came into your possession.

You may want to remortgage shortly after buying a property if you:

  • Bought the property with cash at auction
  • Borrowed money to purchase the property from a friend or relative and you want to pay them back
  • Used savings to purchase a property which you now need access to
  • Require more money to carry out improvements or repairs to the property than you first thought
  • Bought an unmortgageable property using bridging/development finance and are looking to remortgage onto normal mortgage products
  • Want to consolidate debts – e.g. you used credit cards to fund home improvements and now want to pay these off

You may also want to remortgage if you recently inherited or were given a property.

How Soon Can I Remortgage a Property After Purchase?

Typically, most lenders will let you remortgage to a new deal 6 months after your name is registered on the title deeds, so you can’t release equity for at least 6 months. If you do wait until the 6 months have passed, you’ll have a better choice of remortgage products with variable or fixed rate deals. You'll even benefit from a better LTV (loan-to-value) if you remortgage after 6 months since purchase as at this point lenders will be able to take into account your property’s current market value rather than the price you paid when you bought it.

But there are some options if you need to remortgage before then.

As a whole of market mortgage broker, we have access to a range of lenders that’ll consider a remortgage within 6 months of purchase. Many of these will require that you’re registered as the owner at Land Registry – but there are some that are happy to proceed before you’re even on the title deeds.

It can take months after you’ve purchased a property for Land Registry to add you to the title deeds so they often backdate them, recording you as the owner of the property from the date of completion - i.e. the day the purchase completes.

See our guide: How to Remortgage Your House for more information on how remortgages work.

If I Buy a Home with Cash, Can I Get a Quick Remortgage?

You’d still typically have to wait a minimum of 6 months from the date your name is registered as the owner on the title deeds before you could remortgage, regardless of whether you purchased the property with a mortgage or cash.

However, it’s simpler to remortgage a property you bought with cash than one you purchased with a mortgage as there’s no initial mortgage to replace.

What Is a Day One Remortgage?

A day one remortgage isn’t a mortgage product; it’s a phrase used to describe a scenario where someone wants to remortgage within the first 6 months of ownership. You can apply for a day one remortgage literally on or after completion.

It’s best to use an independent broker like John Charcol if you need a day one remortgage, as it’s a particularly niche requirement that’s not easy to research online and they’re only available from a limited number of lenders. Our team have access to a pool of specialist lenders with the best day one remortgage deals.

Can You Remortgage?

Your ability to refinance a property will depend on:

  • Property type - newly built properties may have restrictions on LTV (loan-to-value) as they’re often sold at a premium
  • The reason you’re remortgaging – lenders have different LTV limits depending on whether you want to make home improvements, consolidate debts, etc.
  • Whether you’re purchasing a main residence or buy-to-let – main residential remortgages have a higher average maximum LTV at 90% than buy-to-let ones, which are typically around 75%
  • Your personal and financial circumstances – i.e. your affordability. This is the term lenders use when assessing how much you can afford to make in monthly mortgage payments

Should You Remortgage Early?

Even if you can remortgage early, does that mean you should? The timing for when you should remortgage depends on various factors, including the terms of your existing mortgage, any potential ERCs (early repayment charges), and your specific financial situation.

Here are some general considerations to help you figure out whether refinancing now is the right option for you:

  • Early Repayment Charges

If your current mortgage has ERCs, you may face penalties for repaying the loan early. ERCs are designed to compensate the lender for the interest they would have earned over the fixed term of the mortgage. Typically, these charges decrease over time and may not apply once you reach the end of your fixed or introductory period.

  • Fixed Rate Period

If you are on a fixed rate mortgage, there is usually a fixed period (e.g. 2, 3, 5 years) during which you are locked into a specific interest rate. Remortgaging before this period ends may trigger ERCs.

  • Variable Rate Mortgages

If you’re on a variable rate mortgage or your fixed rate period has ended, you may have more flexibility to remortgage without incurring significant charges.

  • Market Conditions

Monitoring interest rates and market conditions is essential. You might consider remortgaging when interest rates are lower than your current rate, potentially saving money on your monthly payments.

  • Lender Policies

Different lenders have varying policies regarding when you can remortgage. Some may have specific timeframes or waiting periods.

Before deciding to remortgage, it's crucial to:

  • Check your existing mortgage agreement for any ERCs or penalties
  • Consider the overall cost of remortgaging, including fees and charges
  • Assess your financial situation and creditworthiness
  • Shop around for competitive remortgage deals

Speaking with a mortgage brokers can guide you based on your individual circumstances and market conditions, to ensure you get the best deal without the hassle or stress.

Ask The Mortgage Experts answers are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them. We recommend you seek professional advice with regard to any of these topics where appropriate.